Tech firms: Large-cap vs mid-cap, and more

An analysis of 26 global technology companies shows that there hasn't been a significant change in customer demand, says an Emkay Research report. There's also ongoing uncertainty in the market, it adds.

On services-based companies, the report says: "Companies that provide services see weaker discretionary spending (spending on non-essential items and services), affecting their revenue. There's no expectation of a quick recovery in this area. Most of their new business deals are focused on reducing costs and consolidating vendors."

On the Banking, Financial Services, and Insurance (BFSI) sector, it says: "This sector shows notable weakness, particularly in banking. Geographical Differences: European markets are doing better than North American ones in this context. Artificial Intelligence (AI): AI is a major theme and is believed to impact how companies operate significantly. It's seen as a critical driver for future growth."

The Emkay analysis finds more value in large-cap IT stocks than in mid-cap stocks. Any further price increase for mid-cap stocks likely depends on an earnings upgrade cycle (when analysts start increasing their earnings predictions for these companies), it says.

Read the Emkay report here.